RETAIL MANAGEMENT 2015
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1 RETAIL MANAGEMENT 2015 Course Instructor : Dr. Ashis Mishra Number of sessions : 20 Introduction The basic objective of any marketing activity is to generate, satisfy and retain consumers by facilitating production, distribution and consumption functions of the society. Consequently, any marketing activity is actually a process consisting of a series of iterative and inter-related steps to effectively perform the abovementioned functions. Retailing is one such step in the marketing chain of activities that facilitates the distribution function. Initially, it was considered as just another step in the marketing chain and the function was accepted as obvious. As the competition increased globally, differentiation became more and more difficult. Consumer s purchasing power increased as economy opened up into more marketoriented mode. Retail function being the most often used and final link with the ultimate consumer, marketers thought of using it for differentiation and positioning. So, retailing ceased to be considered as an outgrowth of traditional marketing activity; rather it was recognized as an important business proposition in its own accord, which ultimately helps marketing in performing its function and successfully satisfying the objectives. Therefore, retailing immerged as a discipline and considerable thinking and research went into it for the development and substantiation. In this course, we are not trying to repeat retailing as a marketing channel function (it is a part of distribution management course and marketing 4Ps in marketing management course). Rather visualizing the immerging role of retailing business in satisfaction of marketing objectives, we will try to address some crucial issues that an entrepreneur / a corporate house / a consultant faces in the retailing business. 1
2 s 1. To understand retailing as a business in the current environment 2. To identify and critically analyze the retail business environment and key business models for their feasibility 3. To identify key tools and techniques for a successful retail business (Elements of retail strategy) Instructions : As the students have completed most of the basic marketing credits and are aware of the fundamental theories, there will be no repetition of the same. However, as the basics of any subject always remain the most crucial element, there would obviously be some extended application. Apart from that, as we are looking at a business in its entirety rather than a functional application, there would be some new subject specific theories and cross functional applications. So, as participants of this course, you are expected to do an in - depth analysis, integrate and utilize the concepts in real life scenario. The course would provide you with macro level broader and comprehensive vision of retail business and micro level implementable / practicable solutions. Evaluation Criteria 1. Quiz (3 * 15 %) = 45% 2. End Term = 25% 3. Paper Presentation = 20% 4. Case Presentation = 10% ===================================== Total 100% All quizzes would be individual and announced. However, there would be no makeup quizzes in case you miss them, nor there would be any best 2/ 3. Students would be divided into groups and they would be doing paper presentation as well as case presentation in their groups. Each group will be given one paper and one case right in the beginning of the course. The allocation of groups for the papers 2
3 and cases will be on random basis. The case presentations will be done on the day the case is scheduled. The paper presentations will be done towards the end of the course. Books for Readings : Retailing Management Text and Cases (Swapna Pradhan), 3 rd Edition, McGraw- Hill 3
4 Session Plan Module 1 Understanding Retail Session 1 Retail Business Process Topics to be covered : Course over view, Retailing Concept, Significance, Scope, Marketing Interface Pre-reading : Chapter 1 Text book Purpose : Basic idea of a retail business, key issues and the decision areas involved Post - Readings : Serial No. Name of the article 1. Rocket Science Retailing is almost here Are you ready? 2. Retail in 2010 : a world of extremes 3 The future of Retail: From revenue generator to R&D Engine Author Year of Publisher M.L. Fisher, 2000 HBR Some Ananth retailing Raman, A.S. success McClelland factors Joseph L. Gagnon, Julian J. Chu Dana Cho. Beau Trincia 2005 Strategy and Leadership Winterl 2012 Rotman Magazine Futuristic point of view and generic frameworks Reorienting the Focus areas and developing action plans Session 2 Retail format classification system Topics to be covered : A model for classification, bases of classification, different formats, vertical marketing system, Implication to strategy Pre-reading : Chapter 3 Text book 4
5 Purpose : Different retail formats and their strategic significance Case : Text book case 7 (WalMart) Text book case 10 (Big Bazar) Post Reading : 4. The Transfer of Retail formats into developing economies: The example of China Author Year of Publisher Arieh 2001 Journal of Goldman Retailing The format change and strategy change based on different retail environments Session 3 Retail Evolution Topics to be covered : Wheel of Retailing, Retail Life Cycle, Scrambled Merchandising Pre-reading : Chapter 3 Text book Post Reading : 5. The wheel of Retailing 6. Crossing threshold period retail cycle in life Author Year of Publisher Stanley C Journal of Hollander Marketing Mark Palmer 2005 European Management Journal The comprehensive analysis and critique of wheel of retailing Application of RLC model to Walmart 5
6 Session 4 Retail Competition Topics to be covered: Appreciating competitors and developing strategy Case : Best Buy (HBS 1997) Best Buy Customer Centricity (HBS 2006) Best Buy New Customer Approach (A) HBS 2007 Best Buy New Customer Approach (B) HBS 2007 Best Buy in Crisis (HBS 2014) Purpose : To demonstrate the evolution of a retailing organization and its competitive strategy Session 5 Shopper choice Behaviour Topics to be covered: Shopper categorization, Factors influencing shopping behaviour, Understanding Indian Consumers Pre-reading : Chapter 5 Text Book Session 6 Store level application of shopper choice behaviour Topics to be covered : Application and Case Case : GOME Electrical Appliances Holding Limited: The tuangou Challenge (ACRC 2006) Purpose : To demonstrate the change in behaviour of the customers, retailers appreciation of the changed behavioral pattern and the consequent strategy Post reading : 7. Shopping redefined : towards a new concept of retailing Author Year of Publisher Bill Webb 2000 IJRDM A new model for retail brand positioning 6
7 Session 7 Retail Sector in emerging economies Topics to be covered: Macroeconomic factors, Consumer related factors, Retail growth, Prescribed vs. evolving future Pre-reading : Chapter 2 Text book Purpose : Understanding the uniqueness of Indian Retail sector vis-à-vis other developed economies Session 8 Rural Retail Business Topics to be covered: Macroeconomic factors, Consumer related factors, Retail characteristics and growth Pre-reading : Chapter 2 Text book Case: Purpose: Hariyali Kisaan Bazar: A rural business initiative (HBS 2008) Understanding the uniqueness of Indian rural Retail sector vis-à-vis metro and big cities Post reading : 8. Marketing channel length in rural India 9. Multichannel shopping: channel use among rural consumers 10. Retailers and new product acceptance in India s BOP market Author Year of Publisher Rajesh 2012 IJRDM Rural Aithal distribution channel Johnson al. et Shivakumar, Schoormans 2006 IJRDM Channels preference and usage among rural consumers 2013 IJRDM BOP segment in India 7
8 Module 2 Session 9 Retail Strategy Retail Strategy A Topics to be covered : Retail process model, development of strategy for sustainable competitive advantage in turbulent times, Early Warning System. Pre-reading : Chapter 6 Text Book Post - reading : 11. Building Retail Brands 12. When your competitor delivers more for less (pp 27) Author Year of T. A. Henderso n, E. A. Mihas R.j. Frank, J.P. George, L. Narasimh an Publisher 2000 McKinsey Quarterly 2004 McKinsey Quarterly Branding as a positioning tool Value positioning strategy Session 10 Retail Strategy B Topics to be covered: Forecasting, Location Analysis, Various Strategy Frameworks (-Est Model) Pre-reading : Chapter 7 Text Book Session 11 Retail Strategy C Topics to be covered: Various Strategy Frameworks (Scenario Building, Blue Ocean model) Pre-reading : Chapter 6 Text Book Case: Spencer s Retail Limited: Repositioning in a changing retail environment (IVEY 2014) 8
9 Additional- reading: These books would not be provided as part of the course pack. Only, the references are being given here for self-reading by the students. 1. Winning at Retail : Developing a sustained model for retail success by Willard N. Ander and Neil Z. Stern; McMillan Doolittle 2. Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne; HBSP 3. Chaotics by Philip Kotler and John A. Caslione; AMACOM Session 12 Topics to be covered: Merchandising Strategy Merchandising concept, process, Buying Pre-reading : Chapter 9, 10 Text Book Session 13 Topics to be covered: Merchandising application Category Management, Developing and implementing merchandise plan Pre-reading : Chapter 14 Text book Case : Eddie Bauer, Inc. (HBS 2005) Purpose : To develop a merchandise plan Post - Reading : 13. Welcome to the new world of merchandising Author Year of Publisher Scott C HBS A rigorous Friend, P.H. empirical Walker approach to merchandising Module 3 Retail Strategy at Work Session 14 Topics to be covered: Discount Business Strategy, Service Strategy Discount business model, Success factors, Key players, Serv-Qual Model, Service differentiators 9
10 Pre-reading : Chapter 18 Text book Purpose: Understanding and appreciating a retail strategy framework from a CEO / consultant s point of view Session 15 E-tailing Strategy Topics to be covered : E-tailing business model, Significance for retail business Case: Jill s Table: Digitizing a Retail Legacy (Ivey 2014) Purpose : To understand the issues and challenges in e-business Post - readings : 14. Frictionless Commerce: A comparison of Internet and conventional retailers 15. E-tailers competitive intensity: A positioning mapping analysis Author Year of Publisher Erik 2000 Management Brynjolfsson, Science Michael D. Smith Noan Tractinsky, Oded Lowengart 2003 Journal of targeting, measurement and analysis for marketing Comparison of both the channels and business models 10
11 Module 4 Managing Store Session 16 Layout and Design, Visual merchandising Topics to be covered : Space allocation, store layout, store design merchandise presentation, strategic implications visual merchandising as a promotion tool; significance in retailing. Pre-reading : Chapter 17 Text Book Post - reading : Serial No. Name of the article Author Year of Publica tion 16. An analysis of retail display space : Theory and methods 17. In store customer behaviour in the fashion sector : some emerging methodological and theoretical directions Evan E. Anderso n Andrew F. Newman, Gordon R. Foxall Publisher 1979 The A model for Journal of display space Business allocation 2003 IJRDM In store consumer research and implications of consumer behaviour Session 17, 18 Store management in Retail Topics to be covered: Store operations and related issues, Hands on experience, daily store routine Pre-reading : Chapter 16 Text Book Illustration : Industry Interaction (Probable) Post - readings : Serial No. Name of the article 18. Department Store organization Session 19, 20 Author James R. Lowry, Russell G. Wahlers Paper Presentation Year of Publicat ion Pu bli she r 1993 IJR DM Factors retail structure influencing organization 11
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